Feeds

Feds slap cuffs on Google stock scammer

Victims taken for an IPO ride

  • alert
  • submit to reddit

3 Big data security analytics techniques

The FBI has arrested a Dutch man in connection with a $2.8m stock fraud. Shamoon Rafiq, who has been living in New York City since October 2003, sold non-existent Google stock prior to the company's impending IPO.

Rafiq told his victims he was a limited partner of prominent venture capital firm Kleiner, Perkins, Caufield & Byers. He falsely claimed to be involved with what he said were "the ongoing efforts of Google to execute an IPO".

Google is to engage in an IPO later this year, with a rumoured $15bn-plus market cap, but it is not raising capital at this time. However, Rafiq said that he could purchase "Series B Preferred Stock" which had been issued to Google "friends and family" in advance of the IPO.

Rafiq was a BT employee based in Amsterdam, but was transferred to New York. Immediately after arrival, he opened several bank accounts. Between November 2003 and February 2004, his victims deposited more than $500,000 in New York and Europe. When the victims were unable to provide full payment for the stock, Rafiq offered to loan them the additional funds.

Among the victims were several financially successful and sophisticated members of the international technology and business community, the FBI says. These include a New York investment banker, the chairman of a global telecom company, a brokerage firm executive and counsel for a telecommunications company.

Rafiq allegedly used the money to support a lavish lifestyle in New York, California and the Netherlands. If convicted, he faces a maximum sentence of 30 years imprisonment and a $1m fine. ®

Related stories

Google: the challenges of the proposed IPO
Google mulls $15bn IPO - report

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.